Identifying the Valuation Effects and Agency Costs of Corporate Diversification: Evidence from the Geographic Diversification of U.S. Banks

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Is financial inclusion good for bank stability? International evidence (2017, background): “Investigating the impact of geographic diversification, Acharya et al. (2006) on Italy and Goetz et al. (2013) on U.S., did not find any improvement in the risk-return trade-off and market valuations, respectively. set of borrowers.17 In a recent study of Adasme et al. (2006) with respect to the…”
Bank Size, Capital, and Systemic Risk: Some International Evidence (2016, unknown): “7 while Laeven and Levine (2007) and Goetz et al. (2013) find that banks that diversify geographically or across product lines destroy value for their shareholders, consistent with the presence of agency costs in diversified firms. Other papers concentrate on the role of corporate governance, levera”
Does the Geographic Expansion of Banks Reduce Risk (2016, methodology): “DeLong (2001) and Goetz, Laeven, and Levine (2013) find that the geographic diversification of BHCs assets destroys shareholder value, which can arise because insiders extract private rents.”
Competition and bank stability (2017, unknown): “Since entry was often only possible if other states had similar regulations in the place, removing entry barriers was somewhat chaotic and the pattern of removing entry barriers appears to be random (Goetz et al., 2013).”